NGO Consultant

NGO Consultant
Odisha NGO Consultancy Services

Friday, June 10, 2016

3 US donors on MHA watchlist, face fund curbs

NEW DELHI: At a time when Prime Minister Narendra Modi is in United States to consolidate strategic ties, the ministry of home affairs has put under the 'watchlist' three major US-based donors under the Foreign Contributions Registration Act, 2010, sources have told TOI.

The three major NGOs - Open Society Foundation (OSF), World Movement for Democracy and National Endowment for Democracy (NED) are now in the watchlist, also called "prior permission category" of MHA, which means that these donors cannot extend any financial assistance to any registered or unregistered NGO/organisation or individual without clearance from the ministry.

The development comes even as MHA, by end of June, is set to decide the fate of Teesta Setalvad's NGO's Sabrang Trust. Sources say, the trust is most likely going to see its licence cancelled making it ineligible to receive any foreign funding.

An official said that "the three US-based NGOs may have indulged in giving funds to any unregistered NGO in India which led to the action". "They are foreign donors and putting them under watchlist doesn't mean that they can't fund any more but banks have to now inform MHA about any transfers made by them in India," the officer added.

Emails sent to OSF, World Movement for Democracy and NED from TOI went unanswered.

The number of major foreign donors under government's watchlist is now eighteen. Earlier Greenpeace International, Climate Work Foundation, Ford Foundation and CORDAID among others were in the list. Ford was earlier this year removed from the watchlist.

An official said that "MHA doesn't act upon its own. Such issues of funding, which could be termed illegal as per Indian laws, are often flagged to us by intelligence agencies, state police, banks etc and then a decision is taken to streamline funding from the donors".

The move to include three US-based donors in the list comes even after US ambassador to India Richard Verma expressed "concern" over the "potentially chilling effects" of the regulatory steps taken against NGOs in the country. His comments had come on the backdrop of regulatory action taken against several NGOs, including Ford Foundation. Representatives of Ford Foundation also met Nripendra Misra, principal secretary to the Prime Minister, on several occasions to put forth their position on the issue.

Source: http://timesofindia.indiatimes.com/india/3-US-donors-on-MHA-watchlist-face-fund-curbs/articleshow/52646039.cms